Shocking figures from block managers given to leading property consultancy shows extraordinary impact on tenant’s ability to pay their rent on time – or in some cases at all.
The ratio of tenants living in large UK corporate residential blocks who are not paying their rent either on time or at all has dropped to more than 50% for the first time in living memory, a leading property consultancy has revealed.
The extraordinary figures have been published today by Remit Consulting which looked at 1,654 corporate residential properties and 14,937 leases.
It then compared collection rates to the same time last year, and found that residential collection rates have dropped from 79% on date due to 44%, and from 90% to 47% for those collected within seven days of the rent due date.
The figures are even weaker for service charges. Last year 73% were collected on the due date but it’s now dropped to 29%.
While individual and SME landlords operating in the private rented sector have the ability to negotiate directly with tenants who they often know personally, corporate landlords have a much more daunting task ahead of them as tenants struggle to pay their rent and request rent holiday.
“While property managers are working hard to mitigate the impact of the pandemic, and further research is needed in coming days to get a clear picture on how agreed rent and service charge ‘holidays’ are impacting collection rates, these figures are likely to make uncomfortable reading for landlords, asset managers and investors,” says Steph Yates, a senior consultant at Remit Consulting.
Remit Consulting says it is currently working with a major UK landlord association – likely to the NRLA – to publish figures for the private rental markets. Watch this space.